As congress, the Obama people, and the financial elite continue their green shoot charade, aided by mainstream media whores who serve as nothing but stenographers for those in power, a subculture is forming across America in preparation for what most people know is already upon us: a protracted depression. In a world where cash is king, business owners have turned to barter exchange services to preserve cash. The U.S. currently boasts some 500 barter exchanges, up from about 40 in 1980, according to CNN's Justin Martin, and that's the official count; many businesses barter informally to avoid the IRS.
Martin writes about Christian Kar, the founder of Silver Cup Coffee, a company with 16 employees that make high-end espresso machines and custom coffee blends. "In recent months," writes Martin, "Kar has bartered for Web site design, a walk-in freezer, a phone system, vehicle maintenance, plumbing, catering for a company holiday party and a parking lot paint job. Kar estimates that 5% of his company's expenses are covered through barter.
"Tina Ames owns the Craftsmen Cafe, a Clarence, N.Y. eatery that specializes in organic comfort fare such as chicken soup and apple pie. Recently she needed to replace her restaurant's roof, a $7,000 job. Ames was loath to part with that much cash and didn't want to take out a loan. Her solution? She cut a deal with a local contractor who handled the roofing job in exchange for a Ford F-150 pickup that Ames no longer needed."
"I grew up on a farm," she says. "If you had eggs and someone else had corn, you traded. It's an old way of doing things, and it makes a lot of sense."
It's an old way of doing things that's about to become new again, new and permanent. The depth and length of Depression 2.0 will be the most severe depression in history. When the unemployment benefits run out for great swaths across America, who will they turn to when bankrupt states slash welfare and food stamp programs? As our global economy comes to a full stop, trade will begin to flourish in local communities out of necessity. An unemployed carpenter will barter for fresh eggs or produce from a local farmer in exchange for a new chicken coop. We will all be forced to depend more on ourselves and our abilities -- it's a good thing.
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